Chipotle Posts $3.3 Billion in Revenue as GFL Raises 2026 Outlook
Key Facts
Chipotle reported revenue of $3.3 billion in the third quarter of 2026, up 9.6% year over year, driven mainly by new restaurant openings and then by comparable sales growth. Comparable restaurant sales rose 2.1%, with the average check up 1.3% and transactions up 0.8%. The CEO said, "Three consecutive quarters of positive comparable restaurant transaction growth prove that our growth strategy is delivering results." However, profitability measures declined from the same period a year earlier. GFL, meanwhile, raised its annual forecasts for revenue, adjusted earnings and free cash flow as it prepared to hold a call to discuss its results.
Chipotle's operating margin fell to 13.7% from 15.9% a year earlier, while restaurant operating margin declined to 23.3% from 24.5%. Diluted earnings per share fell 6.9% to $0.27, compared with $0.29 in the third quarter of 2025. The figures show a divergence between sales growth and pressure on margins and per-share profitability during the period. Food, beverage and packaging costs fell to 29.5% of revenue from 30.0% a year earlier. The company attributed the improvement to price increases, a reduced impact from tariffs and promotional mix, while meat and freight inflation and increased use of protein weighed in the opposite direction.
On the expense side, labor costs rose to 25.7% of revenue from 25.2% in the year-earlier period. Chipotle cited lower sales volumes and higher compensation and insurance among the reasons for the increase. Digital sales accounted for 38.8% of food and beverage revenue, up from 36.7% a year earlier. The company opened 84 company-owned restaurants during the quarter, including 53 locations with a Chipotlane, along with five restaurants operated by international partners. Openings and digital growth form part of the company's expansion path, which accompanied the quarterly revenue increase.
Chipotle kept its 2026 comparable restaurant sales growth forecast in the low single digits and expects to open 350 to 370 restaurants during the year, including 10 to 15 operated by international partners. For 2027, management expects to open 340 to 360 company-owned restaurants in the United States and Canada. It also targets about 15 to 25 company-owned or partner-operated restaurants outside those two countries. These plans link continued geographic expansion to an increase in locations over the next two years. The 2026 outlook remains consistent with the limited comparable sales growth the company announced.
GFL raised its 2026 revenue forecast to a range of C$8.055 billion to C$8.075 billion, from C$7.510 billion to C$7.530 billion previously. It increased its adjusted earnings before interest, taxes, depreciation and amortization forecast to C$2.490–C$2.495 billion, compared with C$2.290 billion in its previous guidance. It also raised its adjusted free cash flow forecast to about C$1.020 billion from C$900 million. The company forecast an adjusted earnings margin of 30.9%, up 40 basis points from its previous guidance, despite additional pressure from diesel prices. The updated forecasts include the expected contribution from acquisitions completed through October 1, net of completed divestitures.
In its third-quarter results, GFL reported revenue of about C$2.1553 billion, up 27.2% year over year, with core pricing contributing 5.7% of growth. Adjusted earnings before interest, taxes, depreciation and amortization rose 26.8% to C$678.7 million from C$535.1 million a year earlier. But the margin on those earnings edged down to 31.5% from 31.6%. The CEO said the company achieved "7.4% organic revenue growth and more than 115 basis points of core adjusted earnings margin expansion." According to the company's statement, this core expansion excludes the impact of mergers and acquisitions and diesel prices.
GFL had previously raised its annual outlook after its second-quarter results, when it reported revenue of C$1.9478 billion, up 16.3%, and adjusted earnings of C$591.2 million, up 14.8%. The company scheduled its investor call to discuss third-quarter results for October 29, 2026, at 8:30 a.m. Eastern Time. Separately, GFL's special committee gave parties interested in taking the company private a final deadline of November 9, 2026, to submit updated offers. The company said the committee would determine next steps when that date arrives. These dates put the results discussion and the private-offer process among the company's next milestones.